Mulberry CEO Guillon quits after January profit warning

The moves comes less than two months after the British luxury fashion company issued a profit warning that had piled the pressure on the Frenchman and his new strategy of hiking prices.

In a very brief statement, the maker of Bayswater and Alexa handbags said Guillon had advised the board of his intention to step down with immediate effect.

He had been CEO for just over two years.

Godfrey Davis, who is currently non-executive chairman and was previously CEO, will become executive chairman until a successor is found.

Under Guillon, Mulberry had hiked prices to take its brand more upmarket from a traditional position of "affordable luxury", and embarked on a drive to increase the company's profile overseas, targeting affluent Asian shoppers with new stores in key tourist spots.

But the group was forced to downgrade its profit forecasts at the end of January for the third time in around 18 months, after weak demand in South Korea and heavy discounting in its main British market over Christmas hit sales.

The announcement sent its shares plunging over 25% at the time and they have still not recovered.